Yahoo Finance Constellation Brands (STZ) Gains But Lags Market: What You Should Know
In the latest trading session, Constellation Brands (STZ) closed at $173.33, marking a +0.97% move from the previous day. This move lagged the S&P 500's daily gain of 1.1%. At the same time, the Dow added 1.18%, and the tech-heavy Nasdaq gained 1.09%.
Wall Street will be looking for positivity from STZ as it approaches its next earnings report date. This is expected to be July 1, 2020. The company is expected to report EPS of $1.90, down 14.03% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.97 billion, down 5.91% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.36 per share and revenue of $7.78 billion. These totals would mark changes of -8.33% and -6.72%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for STZ. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 6.36% higher. STZ currently has a Zacks Rank of #3 (Hold).
Investors should also note STZ's current valuation metrics, including its Forward P/E ratio of 20.52. For comparison, its industry has an average Forward P/E of 28.24, which means STZ is trading at a discount to the group.
Also, we should mention that STZ has a PEG ratio of 13.5. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Beverages - Alcohol stocks are, on average, holding a PEG ratio of 4.48 based on yesterday's closing prices.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Constellation Brands Inc (STZ) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
